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New to Canada





Overview - Insured - Less than 35% Downpayment 

  •  customers who have immigrated to Canada within the last 60 months, and are looking for an insured mortgage but do not have established Canadian Credit Bureau history.
  •  For customers who have worked or studied in Canada, have applied for permanent residence, and already have already have a Canadian credit history, our regular policy will apply.


Borrower Qualifications

Must have immigrated/relocated to Canada within last 60 months.

 3 months minimum full time employment in Canada.

 Borrowers transferred to Canada under relocation programs are considered on an exception basis.

 Guarantor's Income Confirmation required (if applicable).

Required Documentation

 Purchase and Sale Agreement including all addendums, and MLS listing (if applicable).

 Standard income confirmation.

 Confirmation of Landed Immigrant Status (Permanent Residency Card).

 Preceding 12 month history of rent paid in Canada and 12 month history of 2 regular obligations (e.g. monthly).

Debt Servicing 

 Maximum GDS Ratio o 35% where beacon score is less than 680 (minimum beacon score is 650). o Up to 39% where beacon score is 680 or greater. 

 Maximum TDS Ratio o 42% where beacon score is less than 680 (minimum beacon score is 650). o Up to 44% where beacon score is 680 or greater. o All debts outside country must be included in the TDS. o Rent earned outside of Canada is to be excluded from calculation.

 Down Payment 

 All Down payments must be verified 

 When LTV is 95%, down payment must come from borrower’s own resources 

 When LTV is less than 95%, Down payment can come from a Corporate Relocation Subsidy or be gifted by an immediate family member. 

Loan to Value (LTV) 

 Maximum 95% 

 Maximum purchase price of $1,000,000 


New to Canada – Conventional 35% Down or Greater

Overview 

 This policy applies to customers who have immigrated to Canada within the last 60 months, and who cannot provide confirmation of income meeting TD conventional income confirmation guidelines but otherwise demonstrate a strong profile. 

 Note: For customers who have worked or studied in Canada, have applied for permanent residence, and already have a Canadian credit history, our regular policy should apply.

GDS/TDS:

 No GDS or TDS test is required for conventional financing. 

 Note: Income not required and instead applicant must provide evidence of the equivalent of 12 months of mortgage principal, interest and tax payments in liquid savings in Canada (this is in addition to the applicants 35% down payment). Exceptions to the requirement of 12 months PIT will be considered where evidence of debt service capacity can be confirmed. 

Maximum Loan to Value

 Lesser of 65% no exceptions. 

Amortization

  Maximum 25 years. 


Appraisal 

 Full appraisal is required. 

Down Payment 

 Must be from own resources, cannot be borrowed. 

 Gifted down payments from relatives are permitted.

  Closing costs must be confirmed. 

 Confirmation funds are in Canada before funding application. 

 No exceptions permitted. 

 Down payment reasonability must be completed. Borrower Qualifications 

 Must be resident of Canada with Landed Immigrant / Permanent Resident Status or confirm application for Permanent Resident Status has been received by Immigration Canada. 

 Must be Landed Immigrant/ Permanent Resident no more than 5 years. 

 Applicant(s) must provide evidence of 12 months mortgage principal, interest and tax payments (PIT) in liquid savings in Canada. Note: Exceptions can be made for customers that demonstrate other sources of cash flow. 

 A minimum 30 days savings history of the 12 months PIT is required.

  Confirmation of Landed Immigrant Status (Permanent Residency Card).

  If customer files taxes in Canada, copy of most recent Notice of Assessment to confirm no outstanding taxes owing. Note: The New to Canada policy is to assist applicants that have not been able to establish a Canadian credit history. If an individual is deemed new to Canada however in that time has shown a poor credit repayment track record in Canada, they should not be considered under this program. 





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